Re: Steering Rotted
OK, That tpicture is of a tiller Johnnyrude, not a Merc. Also, according to my parts lists there is no 175HP Merc model in 1987.
Using a 200HP Merc from 1987 as a model, the midsection of the motor has a rubber mount that is bolted thru a yoke on the steering rod. This is likely where your play is. The rubber mounts are mounted via a cage to the midsection. You get the play when the rubber between the outes aluminum and inner aluminum tubes fails. if that is what is wrong, remove the ride guide covers over the cages and see if you can get the bolts out of the cages. They may be corroded, so be careful to use some heat and some penetrating oil to help loosen them. You do not want to break them. The rubber mounts will then be able to be unbolted from the yoke. That snap ring you found goes on the end of the steering rod. A lot have fallen off, so don't sweat it.
You will need to drop the gearcase and remove the powerhead to get the yoke off. Of course if the yoke is good, you do not need to remove the gearcase or powerheat to replace the rubber mounts. Get new bolts as well. They are likely 7/16" grade 8 fine thread steel. Replace with the same.